Ester Industries Limited · NSE:ESTER
Ester Industries — Q3 FY2017 Earnings Presentation
22 slides from Ester Industries's earnings presentation, Feb 7, 2017
Slide 1: Q3 & 9M FY17 Results Presentation
Q3 & 9M FY17 Results Presentation February 7, 2017
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause actual resu
Slide 3: Index
Index Q3 & 9M FY17 Performance 04 Business – wise Performance 10 Strategic Shift – The New Ester 19 About Us 22 3
Slide 4: Q3 & 9M FY17 Performance
ESTER ——_ INDUSTRIES LTD. Q3 & IM FY17 Performance
Slide 5: Key Highlights
Key Highlights Patent filing under PCT for Master Batch to Setting up a world class R & D and produce Speciality polyester yarn Innovation complex at Gurgaon – • Filed a patent for Master Batch to produce • Plans to set up R&D and Innovation complex at specialized polyester yarn - The Master batch i
Slide 6: Performance Update
Performance Update Subdued performance of Lower proportion of the dominant film high margin business resulting in Specialty Polymer moderate revenue business resulting in growth for the period. reduction of Revenue EBITDA operational profitability and 177 588 margins. Working 12 60 11 towards improv
Slide 7: Business Wise - Revenue Contribution
Business Wise - Revenue Contribution Q3 FY17 Q3 FY16 5% 6% 20% 20% 75% 74% 9MFY17 9MFY16 7% 8% 20% 19% 73% 73% 7 PF – Polyester Films; EP – Engineering Plastics; SP – Specialty Polymers
Slide 8: Business Performance (Rs. cr)
Business Performance…….. (Rs. cr) Revenue & EBIT improvement after a Revenue EBIT 48 challenging H1 FY17 Specialty 35 8 5 1 Polymers 10 8 -2 0 4 Q3 FY16 Q2 FY17 Q3 FY17 9MFY16 9M FY17 Q3 FY16 Q2 FY17 Q3 FY17 9MFY16 9M FY17 Focus on cost efficiencies & value Revenue EBIT enhancement translating to ma
Slide 9: Chairman's Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said ”We have moved a step forward in transforming the existing business profile of the Company. Our efforts towards strengthening the innovation and executional capabilities of Specialty Polymer business
Slide 10: Specialty Polymers
Specialty Polymers
Slide 11: Specialty Polymers
Specialty Polymers Product portfolio - 18 products at various stages of Particulars Q3 Q3 9M 9M % % development of which patents have been filed in (Rs cr) FY17 FY16 FY17 FY16 respect of 9 Revenues 8.4 10 -15.9 34.8 47.5 -26.7 High entry barriers protected by Intellectual EBIT -0.5 1.4 - 4.8 8.5
Slide 12: Specialty Polymers – Products & Applications
Specialty Polymers – Products & Applications Polyethylene Terephthalate (PET) Products Polybutylene Terephthalate (PBT) Polyethylene Naphthalate (PEN) Master Batches Rigid Packaging – Hot-fill / Beer Kegs Textile – Flame Retardant Applications Carpets – Stain Resistant Master Batches Heat Sealable E
Slide 13: Polyester Films
Polyester Films
Slide 14: Polyester Films
Polyester Films Manufactures and markets polyester films under the brand Particulars Q3 Q3 9M 9M % % “UmaPET” (Rs cr) FY17 FY16 FY17 FY16 Manufacturing capacity - 57,000 MTPA for polyester films Revenues 132.5 129.3 2.4 369.5 426.1 -13.3 & 13,200 MTPA for metalized polyester films EBIT 13.9 10.6
Slide 15: Polyester Films – Products & Applications
Polyester Films – Products & Applications White Opaque High Clear Products High Barrier Embossable Heat Saleable Twist Wrap Shrink film Anti - Static Metalized High Barrier Matte Flexible Packaging Applications Barrier Packaging Embossing Lidding Label & Graphics 15
Slide 16: Engineering Plastics
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Slide 17: Engineering Plastics – Products & Applications
Engineering Plastics – Products & Applications A well regarded manufacturer of Engineering plastics Particulars Q3 Q3 9M 9M % % (Rs cr) FY17 FY16 FY17 FY16 Diverse Product Portfolio – 350+ grades products marketed under the brand “ESTOPLAST” Revenues 36.4 34.8 4.6 102.5 113.8 -9.9 Manufacturin
Slide 18: Vision - 2022
Vision - 2022 Revenue: Rs. 1,700 – Rs 2,000 crore • Achieve revenues upwards of 5x • EBITDA Margins ~ 25%+ • Increase share of value added products to 30-35%* • EBITDA margins ~ 13%-14% • Increasing focus on optimizing operational cost Revenue: 2x • Increase share of high margin products • EBITDA ma
Slide 19: Strategic shift – The new Ester
Strategic shift – The new Ester
Slide 20: New ESTER
Knowledge New Innovation ESTER Customization Technology
Slide 21: Business Transformation – Commodity to Technology
Business Transformation – “Commodity” to “Technology” New Product Value Addition Technology Innovation Customisation Development Past Present Future One amongst many in the Transforming from a Aiming to be a Technology Polyester Film and “commodity” to “technology” driven enterprise Engineerin
Slide 22: Investor Contacts
Investor Contacts About Us: (CIN :- L24111UR1985PLC015063) Incorporated in 1985, Ester Industries Limited (EIL) is an ISO 9001:2008,ISO 22000:2005,TS16949:2002 certified Company engaged in the manufacture of polyester films, specialty polymers, engineering plastics and polyester chips with manufactu